Mt. Gox Transfers $35 Million in Bitcoin to Cold Storage Amid Ongoing Repayment Delays
Decrypt•1 month ago•
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Mt. Gox Transfers $35 Million in Bitcoin to Cold Storage Amid Ongoing Repayment Delays

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Summary:

  • Mt. Gox transferred 500 Bitcoin ($35 million) to cold storage.

  • The exchange is in a long-delayed repayment process for clients affected by a 2014 hack.

  • Repayments are being managed by top crypto exchanges like Kraken and Bitstamp.

  • The deadline for repayments has been extended to October 2025.

  • Bitcoin's price is currently $69,408, reflecting market concerns over potential selloffs.

Mt. Gox's Recent Bitcoin Move

Mt. Gox is back in the spotlight as it transferred 500 Bitcoin, equivalent to $35 million, to cold storage late Thursday. This significant movement was tracked by Arkham Intelligence, although the reasons behind this transfer remain unclear, with Mt. Gox not responding to inquiries from Decrypt.

Background on Mt. Gox

The exchange is currently engaged in a long-delayed repayment process for former clients who lost their investments due to a massive hack back in 2014. At that time, 850,000 Bitcoins were stolen, leading Mt. Gox to file for bankruptcy.

Current Repayment Status

Top crypto exchanges such as Kraken, Bitstamp, Bitbank, SBI VC Trade, and BitGo are responsible for distributing the recovered assets to former clients. Although some repayments have begun, the process is far from complete, especially after Mt. Gox announced an extension of the repayment deadline to October 2025.

Market Reactions

Historically, movements of Bitcoin from Mt. Gox have raised concerns about potential selloffs, impacting market sentiment. As of now, Bitcoin is trading around $69,408, having experienced a nearly 2% drop in the last 24 hours, despite showing stability prior to the transfer.

The Road to Recovery

After the hack, law enforcement recovered 140,000 Bitcoins, which are now being returned to creditors under a rehabilitation plan approved in 2021. The situation continues to evolve as former clients await the return of their funds after a decade of uncertainty.

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